PRNewswire/ -- Federal Home Loan Bank of Atlanta (the Bank) today released the results for the quarter ended June 30, 2008.
2008 Second Quarter Operating Highlights
As of June 30, 2008, the Bank had total assets of $193.2 billion, an increase of $4.3 billion, or 2.28 percent, from December 31, 2007. This increase was primarily a result of increases in trading securities, held-to-maturity securities and advances, partially offset by a decrease in federal funds sold. Advances, the largest asset on the Bank's balance sheet, increased by $2.2 billion, or 1.52 percent, during this same period.
The Bank's net income for the second quarter of 2008 totaled $108.7 million, an increase of 16.6 percent from $93.2 million for the second quarter of 2007. The increase in net income was due to an increase in net interest income, resulting from higher average advances and mortgage-backed securities balances during the period and an increase in interest rate spread.
The 2008 second quarter performance resulted in an annualized return on equity (ROE) of 5.13 percent for the Bank as compared to the 6.05 percent for the second quarter of 2007. The ROE spread to three-month average LIBOR improved between the periods, equaling 2.38 percent for the second quarter of 2008 as compared to 0.69 percent for the second quarter of 2007.
For the three months ended June 30, 2008, the Bank distributed $114.3 million of earnings to members as a return on their capital investment in the Bank, representing an annualized dividend rate of 5.57 percent, as compared to 6.0 percent for each of the previous two quarters. The Bank's retained earnings balance was $465.3 million as of June 30, 2008.
The Bank filed its full financial report on Form 10-Q on Monday, August 11, 2008.
On July 30, 2008, the President of the United States signed into law the Housing and Economic Recovery Act of 2008, H.R. 3221 (the "Housing Act"). The Housing Act abolishes the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight (each, one year after the date of enactment) and establishes the Federal Housing Finance Agency as the single regulator of the Federal Home Loan Banks, Fannie Mae, and Freddie Mac.
"The Bank has performed well through its second quarter, and intends to continue as a reliable source of wholesale funding," said Richard A. Dorfman, the Bank's President and Chief Executive Officer. "We look forward to working closely with the newly established regulator to ensure the continued strength of the Bank."